IHS Markit and CIPS' latest PMI release for the construction
sector - which measures expectations of growth - came in at 51.9
for the month of July.

Ad

That was down from a reading of 54.8 in June, and even further
below the 56 reading from May.

"UK construction companies recorded another growth slowdown in
July, reflecting lower volumes of commercial building and a
softer expansion of housing activity," a release said.

"The latest survey also revealed a reduction in new business
volumes for the first time since August 2016, which acted as a
headwind to job creation and input buying across the construction
sector."

The purchasing managers index (PMI) figures from IHS Markit are
given as a number between 0 and 100. Anything above 50 signals
growth, while anything below means a contraction in activity - so
the higher the number is, the better things look for the UK.

"July data reveals a growth slowdown in the UK construction
sector, mainly driven by lower volumes of commercial development
and a loss of momentum for house building. Weaker contributions
from the cyclically sensitive areas of construction activity more
than offset resilience in the civil engineering sector.

"Worries about the economic outlook and heightened political
uncertainty were key factors contributing to subdued demand.
Construction firms reported that clients were more reluctant to
spend and had opted to take longer in committing to new
projects."

The slowdown in Britain's construction sector comes as estate
agents also struggle to remain relevant in an increasingly
competitive market.

Profits at Countrywide and Foxtons, two of the UK's biggest
estate agents, fell sharply last quarter on a downturn in
property transactions, while a fifth of UK estate agents
are at risk of going bust as they struggle against the shift to
online firms,
according to a report from accountants Moore Stephens.